Respuesta :
(a) $6000; this sum is to be invested by Arturo's parents after ten years. (b) After ten years, $2083.74 in interest was earned. (c) The difference of $8346.15 was earned.
What is interest?
The fee you pay to borrow money or the fee you charge to lend money is called interest.
Monthly deposit $50
Interest rate, r = 5.75%/12 = 23/4800 = 0.00479
In 10 years, N = 10 × 12 = 120 months.
Total Investment = monthly deposits x N
= $50 x 120 = $6000.
$6000 this amount is to Arturo’s parents to invest after 10 years.
FV = Monthly ×/r
FV = 50 ×[tex]((1+r)^{120} -1)/r[/tex]
FV= [tex]\frac{((1+r)^{120} -1)}{0.00479}[/tex]
FV = $8083.74
Interest Earned in 10 years = $8083.74—$6000 = $2083.74
If they continue to invest for 20 years, tenure = 12 × 20 = 240 months.
FV = 50 ×[tex]((1+r)^{120} -1)/r[/tex]
FV= [tex]\frac{((1+r)^{240} -1)}{0.00479}[/tex]
FV= $22429.89
Interest Earned in 20 years = $22429.89—$12000 = $10429.89.
Interest Earned between 10 years and 20 years = $10429.89—$2083.74 = $8346.15
As a result, a) $6000 b) $2083.74 c) $8346.15 is an accurate answer.
Learn more about on interest, here:
https://brainly.com/question/1040694
#SPJ1
